BRICS countries to establish new international development bank

The 4th International BRICS Summit, a conference attended by the heads of state of Brazil, Russia, India, China, and South Africa was recently held in India. These countries combined contain about 43% of the world's population and represent about 40% of global GDP.

The main outcome of the Summit appears to have been a decision to establish a new development Bank:

The main agenda for the summit was the creation of a new development bank. The idea for setting up such a bank was put forward by India, as a sign of firming the power of the group and increasing its influence in global decision-making; Sudhir Vyas, a senior Indian official, said that the idea for a BRICS bank had been "in the air for some time." Analyst John Mashaka called India's move "long overdue", and said that setting up a bank was a means of "pulling out of the western-dominated World Bank and the International Monetary Fund." Yuhua Xiao, assistant professor at China's Institute of African Studies, noted that setting up the bank showed signs of growing self-assertiveness and inter-dependence among developing economies. Dr. Alexandra A Arkhangelskaya noted that creating such a bank would effectively "shift the weight of economic power" towards the East.

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In the Delhi Declaration at the end of the summit, the BRICS announced the setting up of the bank, described as a "BRICS-led South-South development bank." The finance ministers of the member states were directed to conduct feasibility studies of the initiative and to submit their reports at the next BRICS summit. Pimentel said that the proposed bank was not meant as a sign of abandonment of existing global financial institutions, but that it was a response to current economic necessities. Vyas commented that the BRICS would determine the capital structure and that the initiative would take some time to get started.

The establishment of the BRICS grouping and now the concrete decision around a new international development bank would appear to reflect the aspirations of the ruling circles of these countries to compete more effectively with the "west" for spheres of influence, sources of raw materials, and areas for the investment of capital. In particular the growing imperialist ambitions of Russia, India, and China. It is a reflection of a sharpening of inter-imperialist contradictions in the context of the deepening crisis of capitalism.

Do not rejoice in his defeat, you men. For though the world has stood up and stopped the bastard, the (female dog) that bore him is in heat again. Bertolt Brecht